Natick committee tables vote on override

NATICK - The committee set up to advise selectmen and others about the town's finances put off a scheduled vote yesterday morning on whether to recommend an operational override.

Andrew J. Manuse/Daily News staff

The committee set up to advise selectmen and others about the town's finances put off a scheduled vote yesterday morning on whether to recommend an operational override.

The Financial Planning Committee - made up of selectmen, School Committee members, Finance Committee members and others - had previously decided to make the decision yesterday based on the "order of magnitude" of the town's coming deficits, according to Rick Wynn, the School Committee's chairman, who also is on the financial advisory committee.

However, projections about the amount of money the town would retain in "free cash" weren't available yesterday as expected, so the committee put off its recommendation vote.

The free cash figure - money in department budgets that isn't used and receipts in excess of expected revenue - will be available within the next week, according to Finance Director Robert Palmer.

"We didn't have a free cash number and members thought it was an important number to have to determine if an override is necessary," said Carol Gloff, chairwoman of the Board of Selectmen and the advisory committee. "Members take their responsibility seriously to their respective boards and the town."

She said Financial Planning Committee members need to be able to explain why they make their ultimate recommendation, and why other scenarios are not the best for the town.

Under one scenario prepared by Town Administrator Martha White yesterday, the town faces a $2.4 million deficit in the next fiscal year assuming nothing is spent on capital projects and free cash adds up to $3 million. For the previous fiscal year, free cash was $4.1 million. The town already intends to spend $1.8 million of free cash under five articles on the fall Town Meeting warrant.

Other scenarios members will look into consider debt exclusion overrides as an alternative to an operational override. Debt exclusion overrides increase taxes temporarily to pay for capital expenses the town borrows money for, while operational overrides permanently increase taxes.

In general, a factor in towns getting a good interest rate on debt exclusion overrides is how much money they have stored in reserve funds, which Natick has depleted in recent years to pay for regular budget items.

Health care and energy costs have increased annually over the past few years, adding to the town's operational cost.

In addition, the town is now facing $150 million worth of capital projects, Palmer said. In addition, regular maintenance costs that fall into capital budgets tend to run between $2.5 million and $4 million each year, he said.

(Andrew J. Manuse can be reached at amanuse@cnc.com or 508-626-3964.)

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